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Amadi, C, Carrillo, P and Tuuli, M (2019) PPP projects: improvements in stakeholder management. Engineering, Construction and Architectural Management, 27(02), 544–60.

Huo, X, Yu, A T W, Zezhou, W and Jayantha, W M (2019) Site planning and design of green residential building projects: case studies in China. Engineering, Construction and Architectural Management, 27(02), 525–43.

Hyung, W, Kim, S and Jo, J (2019) Improved similarity measure in case-based reasoning: a case study of construction cost estimation. Engineering, Construction and Architectural Management, 27(02), 561–78.

Johari, S and Jha, K N (2019) Challenges of attracting construction workers to skill development and training programmes. Engineering, Construction and Architectural Management, 27(02), 321–40.

Li, X, Wang, X and Lei, L (2019) The application of an ANP-Fuzzy comprehensive evaluation model to assess lean construction management performance. Engineering, Construction and Architectural Management, 27(02), 356–84.

Mellado, F, Lou, E C and Becerra, C L C (2019) Synthesising performance in the construction industry. Engineering, Construction and Architectural Management, 27(02), 579–608.

Nwaogu, J M, Chan, A P, Hon, C K and Darko, A (2019) Review of global mental health research in the construction industry. Engineering, Construction and Architectural Management, 27(02), 385–410.

Salvado, F, Almeida, N and Vale e Azevedo, A (2019) Aligning financial and functional equivalent depreciations rates of building assets. Engineering, Construction and Architectural Management, 27(02), 441–57.

  • Type: Journal Article
  • Keywords: Information systems; Case study; Strategic management; Approach; Lifestyle costing; Building management; Depreciation rates; Technical functions; Financial functions;
  • ISBN/ISSN: 0969-9988
  • URL: https://doi.org/10.1108/ECAM-03-2019-0152
  • Abstract:
    Both financial and non-financial functions are imbedded in the life-cycle management activities of building assets. These functions provide relevant information for the establishment of operational and maintenance strategies and for decision-making processes related with the timing of major repairs, replacements and rehabilitations. The purpose of this paper is to focus on improving the alignment of financial and non-financial functions related to the recognition that the service potential of buildings should be appropriately funded as it is consumed over its life cycle. Design/methodology/approach Authors undertake an analysis of depreciation rates used to accommodate a systematic allocation of the depreciable amount of building assets over its useful life. Different depreciation approaches and calculation methods are explored. A case study of a school building portfolio is used to debate situations of misalignment of financial and non-financial depreciation rates. Data mining methods including decision tree and clustering are used to predict equivalent functional depreciation rates of buildings system and subsystems and promote an enhanced alignment with regulated financial depreciation rates toward an optimized life-cycle management of the school building portfolio. Findings Historical data show the relevance of considering technical and functional characteristics of the building system and their subsystems (landscaping; structure; external elevations and roofs; interior divisions; and services and equipment) when determining depreciation rates for the building assets The case study showed a misalignment of equivalent functional and financial depreciation rates used in the life-cycle management activities of the school building portfolio ranging between 1/1.26 for external elevations and roofs and 1/5.21 for landscaping. Originality/value Buildings initial technical and functional attributes are affected with its wear, aging or decay, causing loss of value until they reach end-of-life. This paper demonstrates the impact of the different interpretations of the concept of useful life and the subsequent misalignment that it generates between financial functions based on financial depreciation rates and non-financial functions based on historical data and the functional equivalent (technical and functional) depreciation rates. Economic data of 158 public school buildings constructed in Portugal since the 1940s, that sound life-cycle thinking enhances the alignment of both financial and non-financial functions.

Wang, X, Shi, L, Wang, B and Kan, M (2019) A method to evaluate credit risk for banks under PPP project finance. Engineering, Construction and Architectural Management, 27(02), 483–501.

Yevu, S K and Yu, A T W (2019) The ecosystem of drivers for electronic procurement adoption for construction project procurement. Engineering, Construction and Architectural Management, 27(02), 411–40.

Zarghami, S A and Gunawan, I (2019) A domain-specific measure of centrality for water distribution networks. Engineering, Construction and Architectural Management, 27(02), 341–55.

Zhou, S, Ng, S T, Lee, S H, Xu, F J and Yang, Y (2019) A domain knowledge incorporated text mining approach for capturing user needs on BIM applications. Engineering, Construction and Architectural Management, 27(02), 458–82.

Zohrehvandi, S, Vanhoucke, M, Soltani, R and Javadi, M (2019) A reconfigurable model for implementation in the closing phase of a wind turbines project construction. Engineering, Construction and Architectural Management, 27(02), 502–24.